Alerting Homeowners with Septics
The new regulation is called Time of Transfer because the recorder will not record the deed until the septic inspection has been done with repairs that may be needed completed or escrowed. The septic inspection must be completed by a certified inspector with a DNR certificate. Once completed, the inspection will be valid for two years.
For real estate transfers when weather does not permit the septic inspection, a DNR recorded escrow agreement can be recorded with the groundwater hazard statement. The buyer must have a binding contract with the seller to have the inspection and any repairs if needed completed within a reasonable time. If you are the seller, an escrow agreement for the septic inspection and possible replacement may take away or diminish the proceeds of your sale. To protect your proceeds at closing, have the Time of Transfer required inspection before winter arrives or the property becomes vacant.
If the property has not been occupied for thirty days, additional procedures to test the septic are required to inspect the distribution box and leach lines. This will cost the seller more money. After sixty days of vacancy, a septic meeting the Time of Transfer will not be accepted until a resident occupies the property for thirty days prior to the testing.
Exclusions to the Time of Transfer septic regulations are real estate sales by court order, foreclosure, estate, transfer from marriage or divorce, and transfer between joint tenants in title.
Senate File 261 will be implemented on July 1, 2009 to bring current septic and leach fields protecting our groundwater. For additional information on this new septic regulations or references of DNR certified inspectors email heather@skogman.com or call 319-350-7653.
Heather Morris CRS, ABR, GRI, CLHMS
Broker Associate to Skogman Realty
